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Legal & General Group PLC (GB:LGEN)
LSE:LGEN

Legal & General (LGEN) AI Stock Analysis

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GB:LGEN

Legal & General

(LSE:LGEN)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
262.00p
▲(1.12% Upside)
Legal & General's overall stock score reflects a mix of financial challenges and positive market sentiment. The company's financial performance is a concern due to declining revenues and cash flow issues. However, technical indicators show bullish momentum, and corporate events suggest confidence in future growth. The high P/E ratio indicates overvaluation, but the attractive dividend yield provides some balance.
Positive Factors
Diverse Revenue Streams
The company's diverse revenue streams, including insurance premiums and asset management fees, provide stability and reduce dependency on a single market segment, enhancing resilience against sector-specific downturns.
Responsible Investing
A focus on responsible investing aligns with growing global trends towards sustainability, potentially attracting more clients and investors who prioritize ESG factors, thus supporting long-term growth.
Stable Debt-to-Equity Ratio
A stable debt-to-equity ratio suggests that the company maintains a balanced approach to leveraging, which can help manage financial risk and support long-term financial health despite high leverage.
Negative Factors
Declining Revenue
Declining revenues indicate potential challenges in maintaining market share or product competitiveness, which could impact long-term growth and profitability if not addressed.
Negative Free Cash Flow
Negative free cash flow raises concerns about the company's ability to fund operations and growth initiatives internally, potentially leading to increased reliance on external financing.
Low and Declining Profit Margins
Low and declining profit margins suggest operational inefficiencies or pricing pressures, which could undermine profitability and limit the company's ability to reinvest in growth opportunities.

Legal & General (LGEN) vs. iShares MSCI United Kingdom ETF (EWC)

Legal & General Business Overview & Revenue Model

Company DescriptionLegal & General (LGEN) is a leading British financial services company headquartered in London, specializing in insurance, investment management, and retirement solutions. Founded in 1836, the company operates across several sectors, including life insurance, general insurance, and asset management. Legal & General provides a wide range of products and services, such as individual and group life insurance, annuities, pensions, and investment products, catering to both retail and institutional clients.
How the Company Makes MoneyLegal & General generates revenue through multiple key streams. The primary source is its life insurance and annuity products, where it earns premiums from customers and collects investment income from the assets backing these policies. Additionally, the company has a significant asset management division, managing investments for both individual and institutional clients, which generates fees based on the assets under management (AUM). Legal & General also earns income from its general insurance operations and consulting services. Significant partnerships with various financial institutions and corporations enhance its market reach and distribution capabilities, further contributing to its earnings. The company benefits from economies of scale in its operations, allowing it to manage costs effectively while maximizing revenue.

Legal & General Financial Statement Overview

Summary
Legal & General faces challenges with declining revenues and profitability, reflected in low margins and fluctuating income. The balance sheet showcases a heavily leveraged position, which could pose risks if asset values decline. Cash flow issues, with negative free cash flow in recent years, raise concerns about liquidity and operational efficiency. Overall, the company needs to address these financial weaknesses to ensure stability and growth.
Income Statement
45
Neutral
Legal & General has seen significant revenue fluctuations, with a decline from 2020 to 2024, indicating instability in revenue streams. The net profit margin has been low and declining, with a sharp decrease in net income from 2023 to 2024. The absence of EBIT and EBITDA margins in 2024 is concerning and suggests potential operational challenges.
Balance Sheet
60
Neutral
The balance sheet shows a decreasing stockholders' equity from 2019 to 2024, which raises concerns about the company's financial leverage. However, the debt-to-equity ratio remains relatively stable, and the equity ratio indicates a small but consistent portion of equity in the asset base. The high level of total assets compared to equity suggests potential risk due to high leverage.
Cash Flow
35
Negative
The cash flow statement highlights negative free cash flow in recent years, particularly a significant drop in 2023 and 2024. This points to potential liquidity issues. The operating cash flow has also been negative in several years, indicating challenges in generating cash from operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.78B12.96B11.07B10.19B9.29B9.28B
Gross Profit5.68B12.59B10.72B9.90B8.99B8.98B
EBITDA845.00M704.00M423.00M1.26B2.92B1.50B
Net Income116.00M191.00M457.00M783.00M2.05B1.61B
Balance Sheet
Total Assets557.02B544.17B522.10B506.32B575.46B563.63B
Cash, Cash Equivalents and Short-Term Investments0.0018.58B22.54B36.26B16.49B43.29B
Total Debt4.71B7.70B6.12B5.48B5.39B5.84B
Total Liabilities554.60B540.66B517.31B494.18B564.51B553.66B
Stockholders Equity2.41B3.55B4.83B5.56B10.98B10.00B
Cash Flow
Free Cash Flow-1.22B-4.54B-14.48B20.28B-374.00M4.14B
Operating Cash Flow-1.13B-4.45B-14.24B20.46B-169.00M4.30B
Investing Cash Flow285.00M239.00M-422.00M-226.00M133.00M-457.00M
Financing Cash Flow-1.35B331.00M-556.00M-1.03B-1.50B-29.00M

Legal & General Technical Analysis

Technical Analysis Sentiment
Positive
Last Price259.10
Price Trends
50DMA
243.59
Positive
100DMA
243.31
Positive
200DMA
239.93
Positive
Market Momentum
MACD
3.81
Negative
RSI
70.01
Negative
STOCH
94.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LGEN, the sentiment is Positive. The current price of 259.1 is above the 20-day moving average (MA) of 249.61, above the 50-day MA of 243.59, and above the 200-day MA of 239.93, indicating a bullish trend. The MACD of 3.81 indicates Negative momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 94.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LGEN.

Legal & General Risk Analysis

Legal & General disclosed 8 risk factors in its most recent earnings report. Legal & General reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Legal & General Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£3.60B11.376.50%7.23%-7.11%0.45%
77
Outperform
£6.21B17.488.30%5.37%4.78%-4.86%
76
Outperform
£5.79B9.8424.36%4.13%28.34%44.04%
76
Outperform
£2.51B18.2112.23%5.71%-10.85%-42.02%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
61
Neutral
£14.43B65.106.81%8.29%-38.98%-31.14%
61
Neutral
£6.72B-115.81-1.53%7.09%9.86%-134.41%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:LGEN
Legal & General
259.10
51.17
24.61%
GB:ICG
Intermediate Capital
2,046.00
67.05
3.39%
GB:EMG
Man Group plc
226.20
30.96
15.86%
GB:SDR
Schroders
400.20
104.26
35.23%
GB:ABDN
Aberdeen Group
202.40
72.64
55.98%
GB:MNG
M&G Plc
284.90
106.88
60.04%

Legal & General Corporate Events

Other
Legal & General Executives Purchase Shares Under Employee Plan
Neutral
Dec 2, 2025

Legal & General Group Plc announced the purchase of shares by several key executives under the company’s Employee Share Plan. This transaction, conducted on December 1, 2025, at the London Stock Exchange, involves notable figures such as the Group Chief Financial Officer and the Group Chief Risk Officer, indicating a continued commitment to aligning management interests with shareholder value.

Other
Legal & General Directors Acquire Shares, Signaling Confidence
Positive
Dec 1, 2025

Legal & General Group Plc announced a transaction involving the purchase of shares by three of its Non-Executive Directors, Mark Jordy, Ric Lewis, and Laura Wade-Gery. The shares were acquired under their Terms of Appointment at a price of £2.444 per share, with transactions conducted on the London Stock Exchange. This move reflects the directors’ confidence in the company’s future prospects and could potentially influence stakeholder perceptions positively.

Regulatory Filings and Compliance
Legal & General Announces Total Voting Rights Update
Neutral
Dec 1, 2025

Legal & General Group Plc announced its total voting rights as of November 28, 2025, in compliance with the FCA Disclosure Guidance and Transparency Rules. The company reported a capital consisting of 5,697,344,679 ordinary shares, each with voting rights, and no shares held in treasury. This figure serves as a denominator for shareholders to determine their interest or changes in interest in the company, reflecting Legal & General’s commitment to transparency and regulatory compliance.

Executive/Board ChangesRegulatory Filings and Compliance
Legal & General Chair Purchases Shares, Ensuring Compliance
Neutral
Dec 1, 2025

Legal & General Group Plc announced a transaction involving its Chair, Sir John Kingman, who purchased ordinary shares into an ISA. This transaction, conducted on the London Stock Exchange, reflects the company’s adherence to UK Market Abuse Regulation, ensuring transparency and compliance in its operations.

Regulatory Filings and Compliance
Legal & General CEO Transfers Shares to Spouse
Neutral
Nov 18, 2025

Legal & General Group Plc announced a share transfer involving its Group Chief Executive Officer, António Simões, who transferred 313,947 ordinary shares to his spouse, Tomas de Zarate, at no cost. This transaction does not affect Simões’ aggregate beneficial shareholding in the company, maintaining alignment with shareholder interests. The notification complies with the UK Market Abuse Regulation, ensuring transparency in the company’s executive transactions.

Business Operations and Strategy
Legal & General Executives Purchase Shares Under Employee Plan
Neutral
Nov 4, 2025

Legal & General Group Plc announced the purchase of shares by several key executives under the company’s Employee Share Plan. This transaction, involving the Group Chief Financial Officer, Group Chief Risk Officer, Group General Counsel, CEO of Institutional Retirement, and Group Chief Operating Officer, reflects a strategic move to align the interests of management with those of shareholders, potentially impacting the company’s market perception and stakeholder confidence.

Other
Legal & General Directors Purchase Shares, Signaling Confidence
Positive
Nov 3, 2025

Legal & General Group Plc has announced the purchase of ordinary shares by three of its Non-Executive Directors, Mark Jordy, Ric Lewis, and Laura Wade-Gery, under their Terms of Appointment. The transactions, conducted on the London Stock Exchange, reflect the directors’ commitment and confidence in the company’s future, potentially impacting stakeholder perceptions positively.

Regulatory Filings and Compliance
Legal & General Announces Total Voting Rights Update
Neutral
Nov 3, 2025

Legal & General Group Plc has announced its total voting rights as of October 31, 2025, in compliance with the FCA Disclosure Guidance and Transparency Rules. The company’s capital consists of 5,697,093,456 ordinary shares, all with voting rights, and it holds no shares in Treasury. This information is crucial for shareholders to determine their interests and obligations under the regulatory framework.

Regulatory Filings and Compliance
Legal & General Chair Purchases Shares, Strengthening Governance Transparency
Positive
Nov 3, 2025

Legal & General Group Plc has announced a transaction involving its Chair, Sir John Kingman, who purchased ordinary shares into an ISA. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to transparency and compliance with the UK Market Abuse Regulation, potentially reinforcing stakeholder confidence in its governance practices.

Business Operations and Strategy
Legal & General Targets Growth in UK DC and Annuities Markets
Positive
Oct 23, 2025

Legal & General Group Plc announced its strategic focus on capturing growth opportunities in the UK’s Defined Contribution (DC) and Annuities markets over the next decade. The company aims to leverage its position as the largest UK DC asset manager and annuity provider to achieve significant growth in Retail operating profit, targeting £40-50bn in Workplace DC net flows and a 4-6% CAGR in Retail operating profit from 2024-2028. This growth is expected to shift profit mix towards fee-based earnings and enhance operating leverage, positioning Retail as a key driver of the company’s future growth.

Executive/Board ChangesBusiness Operations and Strategy
Legal & General Appoints Scott Wheway as New Chair
Positive
Oct 13, 2025

Legal & General Group Plc has announced the appointment of Scott Wheway as the new Chair, succeeding Sir John Kingman. Wheway, who brings extensive leadership experience in financial services and retail, will join the board as an independent Non-Executive Director and Chair Designate in January 2026, assuming the Chair role in May 2026. This leadership transition is expected to support L&G’s strategic growth and enhance stakeholder value, as the company continues to expand its international market presence and maintain its commitment to responsible investing.

Private Placements and FinancingBusiness Operations and Strategy
Legal & General Executives Acquire Shares Under Employee Plan
Positive
Oct 2, 2025

Legal & General Group Plc has announced the purchase of shares by several key executives under the company’s Employee Share Plan. This transaction, conducted on the London Stock Exchange, involved the acquisition of ordinary shares at a price of £2.36 each by five senior figures, including the Group Chief Financial Officer and the Chief Executive Officer of Legal & General Institutional Retirement. This move reflects confidence in the company’s future prospects and aligns the interests of the management with those of the shareholders.

DividendsRegulatory Filings and Compliance
Legal & General Chair Acquires Shares Under DRIP
Neutral
Oct 1, 2025

Legal & General Group Plc announced the purchase of ordinary shares under its Dividend Reinvestment Plan (DRIP) by Sir John Kingman, the company’s Chair. The transaction, conducted on the London Stock Exchange, involved the acquisition of 4,129 shares at a price of £2.37 each. This move is part of the company’s ongoing efforts to maintain transparency and compliance with the UK Market Abuse Regulation, potentially reinforcing investor confidence and stability in its governance practices.

Regulatory Filings and Compliance
Legal & General Announces Total Voting Rights Update
Neutral
Oct 1, 2025

Legal & General Group Plc has announced its total voting rights as of September 30, 2025, in compliance with the FCA Disclosure Guidance and Transparency Rules. The company reported a capital structure consisting of 5,697,452,017 ordinary shares, all with voting rights, and no shares held in treasury, which stakeholders can use to assess their interests in the company.

Other
Legal & General Chair Purchases Shares, Signaling Confidence
Positive
Oct 1, 2025

Legal & General Group Plc has announced a transaction involving the purchase of ordinary shares by Sir John Kingman, the company’s Chair. This transaction, conducted on the London Stock Exchange, involves the acquisition of shares into an ISA, reflecting ongoing investment activities by key company personnel. Such transactions can signal confidence in the company’s financial health and future prospects, potentially impacting stakeholder perceptions and market positioning.

Other
Legal & General Directors Acquire Shares Reflecting Confidence
Positive
Oct 1, 2025

Legal & General Group Plc announced the purchase of ordinary shares by three of its Non-Executive Directors, Mark Jordy, Ric Lewis, and Laura Wade-Gery, under their Terms of Appointment. The transactions were conducted on the London Stock Exchange, with each director purchasing shares at a price of £2.362, reflecting confidence in the company’s future prospects and potentially impacting stakeholder perceptions positively.

Executive/Board ChangesBusiness Operations and Strategy
Legal & General Appoints Andrew Kail as New CFO
Positive
Sep 30, 2025

Legal & General has announced the appointment of Andrew Kail as the new Group Chief Financial Officer, effective December 1, 2025, following Jeff Davies’ decision to step down. Kail, who has been with L&G since 2021, brings extensive experience from his previous roles at PwC and within L&G, and is expected to continue driving the company’s growth strategy. The transition is seen as a strategic move to maintain L&G’s strong financial and strategic position, with Kail’s deep knowledge of the business anticipated to benefit the company’s operations and stakeholders.

Business Operations and Strategy
Legal & General Announces Managerial Share Purchases Under Employee Plans
Positive
Sep 29, 2025

Legal & General Group Plc announced the purchase of ordinary shares by key managerial personnel under its Employee Share Plan and Share Bonus Plan. The transactions, conducted on 26 September 2025, involved shares priced at £2.37 and £2.35, reflecting the company’s ongoing commitment to aligning managerial interests with shareholder value. This move underscores Legal & General’s strategy to enhance stakeholder engagement and maintain its competitive edge in the financial services sector.

DividendsRegulatory Filings and Compliance
Legal & General Directors Invest in Company Shares via DRIP
Positive
Sep 29, 2025

Legal & General Group Plc announced that several directors have purchased ordinary shares under the Dividend Reinvestment Plan (DRIP) at a price of £2.37 per share. This transaction, disclosed in compliance with the UK Market Abuse Regulation, reflects the directors’ confidence in the company’s financial health and future prospects, potentially strengthening stakeholder trust and market positioning.

Executive/Board ChangesBusiness Operations and Strategy
Legal & General Announces Vesting of Share Awards to COO
Neutral
Sep 26, 2025

Legal & General Group Plc announced the vesting of restricted share awards to Katie Worgan, the Group Chief Operating Officer, as part of her remuneration package. The first tranche of 13,773 shares vested on 23 September 2025, with 6,474 shares sold to cover tax and dealing costs, while 7,299 shares were retained. This move aligns with the company’s strategy to compensate key executives for incentives forfeited from previous employers, potentially impacting the company’s talent retention and executive compensation strategies.

Private Placements and FinancingBusiness Operations and Strategy
Legal & General Completes Tender Offer for Subordinated Notes
Neutral
Sep 8, 2025

Legal & General Group Plc announced the final results of its tender offer for £600,000,000 Fixed Rate Reset Subordinated Notes due 2064. The company accepted £587,295,000 in aggregate nominal amount of the Notes without any scaling, and intends to cancel all purchased Notes, leaving £12,705,000 outstanding. This move is part of Legal & General’s strategic financial management, potentially impacting its capital structure and stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 07, 2025